Effectiveness of distribution channel of coca cola project report
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Effectiveness of distribution channel of coca cola project report



Effectiveness of distribution channel of coca cola project report

Effectiveness of distribution channel of coca cola project report



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Effectiveness of distribution channel of coca cola project report Effectiveness of distribution channel of coca cola project report Document Transcript

  • Hindustan Cocal Cola Beverages Private LimitedCONTENTSS NO Subject matter 1 Chapter 1  Executive Summary  Introduction  Literature review  Statement of the problem  Scope of study  Objective of the study 2 Chapter 2  Organization Profile Coca-Cola Co  Sampling  Research Design  Data collection method  Measuring toolsBABASAB PATIL 1
  • Hindustan Cocal Cola Beverages Private Limited 3 Chapter 3  Analysis with graphs and charts  Findings  Recommendation  Conclusion 4 Chapter 4  Appendix Questionnaire Master code sheet BibliographyBABASAB PATIL 2
  • Hindustan Cocal Cola Beverages Private LimitedCHAPTER-IBABASAB PATIL 3
  • Hindustan Cocal Cola Beverages Private LimitedEXECUTIVE SUMMARYThis project report is on the “THE STUDY TO ASSESS THE EFFECTIVENESSOF DISTRIBUTION CHANNEL OF COCA COLA CO. AT BELGAUM CITY”This project for done for Coca-Cola Pvt. Ltd. With their distribution points atBelgaumUltimate objective of the every organization is to satisfy the needs and wants of theircustomer in which distribution channel plays a vital role.The study will be done taking 100 as the Sample Size.. The sampling method used yis “Stratified Random Sampling “. The source for conducting survey was takenfrom the distributors Red Outlet List provided by the distributors in Belgaum city.This study helps the organization in the following way: • To know performance of existing distribution channel • To know if there are any flows in the channel • To know their retailers satisfaction level with respect to the existing channel.BABASAB PATIL 4
  • Hindustan Cocal Cola Beverages Private Limited INTRODUCTION The project started from 2nd December 2006 to 31st December 2006 and 16 weeks (2 days in a week from Jan 07 to April 07) in Belgaum city. The project was carried due to the criteria of the University for the Completion of Masters of Business Administration. The main objective of this in-plant training was to get an exposure to the working environment in an organization. This was an opportunity for me to relate concepts learned by me to the practical application in the organization. This in-plant training helped me in interacting with a highly experience managers which helped me to improve my practical knowledge.BABASAB PATIL 5
  • Hindustan Cocal Cola Beverages Private Limited LITERATURE REVIEWChannel of DistributionMeans used to transfer merchandise from the manufacturer to the end user.Intermediaries in the channel are called middlemen. Those who actually take title tothe merchandise and resell the goods are merchant middlemen. Those who act asBroker but do not take title are agent middlemen. Merchant middlemen includewholesalers and retailers. Agent middlemen include ManufacturersRepresentatives, brokers, and sales agents.Whether these exchange processes occur between manufacturers and theirsuppliers, retailers and consumers, or in some other buyer-seller relationship,marketing channels offer an important way to build competitive advantages intodays global marketplace. This is so for two major reasons: • Distribution strategy lies at the core of all successful market entry and expansion strategies. The globalization of manufacturing and marketing requires the development of exchange relationships to govern the movement of goods and services. • New technologies are creating real-time (parallel) information exchange and reducing cycle times and inventories. Take as an example Dell Computer,BABASAB PATIL 6
  • Hindustan Cocal Cola Beverages Private Limited which produces on-command, customized computers to satisfy individual customer preferences. At the same time, Dell is able to align its need for material inputs (such as chips) with customer demand for its computers. Dell uses just-in-time production capabilities. Internet-based organizations now compete vigorously with traditional suppliers, manufacturers, wholesalers, and retailers. Marketing channels always emerge from the demands of a marketplace. However,markets and their needs are always changing. Its true, then, that marketingchannels operate in a state of continuous evolution and transformation. Channels ofdistribution must constantly adapt in response to changes in the global marketplace. This new selling orientation inspired the development of new intermediaries asmanufacturers sought new ways to expand market coverage to an increasinglymobile population. The selling orientation required that more intimate access beestablished to a now more diversified marketplace. In response, wholesale and retailintermediaries evolved to reach consumers living in rural areas, newly emergingsuburbs and densely populated urban centers.Relationship marketing is driven by two principles having particular relevance tomarketing channel strategy: • Long-term, ongoing relationships between channel members are cost- effective. (Attracting new customers costs more than ten times more than retaining existing customers.)BABASAB PATIL 7
  • Hindustan Cocal Cola Beverages Private Limited • The interactive dialogue between providers and users of goods and services is based on mutual trust. The Role of IntermediariesThis progression from a production to a relationship orientation allowed many newchannel intermediaries to emerge because they created new customer values.Intermediaries provide many utilities to customers.. Two principal tasks associated with the sorting function: • Categorizing. At some point in every channel, large amounts of heterogeneous supplies have to be converted into smaller homogeneous categories. • Breaking bulk. Producers want to produce in bulk quantities. Thus, it is necessary for intermediaries to break homogeneous lots into smaller units.The role intermediaries play in building customer confidence is their mostoverlooked function. Several types of risks are associated with exchanges inchannels of distribution, including need uncertainty, market uncertainty, andtransaction uncertainty. Intermediaries create value by reducing these risks.BABASAB PATIL 8
  • Hindustan Cocal Cola Beverages Private LimitedMANAGEMENT PROBLEM“Shortage of Stock faced by the retailers of Belgaum city”RESEARCH PROBLEM:“Know the bottle-necks in the distribution channel”PURPOSE OF THE STUDYTo know if the existing distribution channel is capable of meeting the increaseddemand for the Coca-Cola Products in Belgaum CityTOPIC OF THE STUDYTHE STUDY TO ASSESS THE EFFECTIVENESS OF DISTRIBUTIONCHANNEL OF COCA COLA CO. IN BELGAUM CITYBABASAB PATIL 9
  • Hindustan Cocal Cola Beverages Private LimitedSCOPE OF THE STUDYThe study is confined to the retailers in Belgaum cityLIMITATIONS OF THE STUDY  Due to the time constraint the study is restricted only to the retailers of Belgaum City and not to the surrounding villages  The coverage of the objective of the study is limited to the extent of the information given by the company. Inspite of the above mentioned limitations, every effort has been made and the report is prepared to the best of my knowledge. BENEFITS OF THE STUDYThe study will confront me the following:  The culture of the company  Their distribution channel  Satisfaction level of the customers  Handling customer complaints on field.BABASAB PATIL 10
  • Hindustan Cocal Cola Beverages Private LimitedOBJECTIVE OF THE PROJECT:“The main objective behind this project is to study and understand distributionchannel and its effectiveness in bringing products in right time to right customers”To study the main objective the following are the necessities:  The performance level of the existing distribution channel.  The cover area  Problems related to the existing channel  Satisfaction level of the customers (retailers) towards the existing distribution channel.BABASAB PATIL 11
  • Hindustan Cocal Cola Beverages Private LimitedCHAPTER-IIBABASAB PATIL 12
  • Hindustan Cocal Cola Beverages Private Limited ORGANIZATION PROFILECOCA – COLA Pvt. LtdCoca-Cola originated as a soda fountain beverage in 1886selling for five cents a glass. Early growth was impressive, butit was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today1894 … A modest start for a bold ideaIn a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beveragecalled Coca-Cola impressed the stores owner, Joseph A. Biedenharn. He beganbottling Coca-Cola to sell, using a common glass bottle called a Hutchinson.Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candlerthanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales.1899 … The first bottling agreementTwo young attorneys from Chattanooga, Tennessee believed they could build abusiness around bottling Coca-Cola. In a meeting with Candler, Benjamin F.BABASAB PATIL 13
  • Hindustan Cocal Cola Beverages Private LimitedThomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Colaacross most of the United States -- for the sum of one dollar. A third Chattanoogalawyer, John T. Lupton, soon joined their venture.1900-1909 … Rapid growthThe three pioneer bottlers divided the country into territories and sold bottlingrights to local entrepreneurs. Their efforts were boosted by major progress inbottling technology, which improved efficiency and product quality. By 1909, nearly400 Coca-Cola bottling plants were operating, most of them family-ownedbusinesses. Some were open only during hot-weather months when demand washigh.1916 … Birth of the Contour BottleBottlers worried that Coca-Colas straight-sided bottle was easily confused withimitators. A group representing the Company and bottlers asked glassmanufacturers to offer ideas for a distinctive bottle. A design from the Root GlassCompany of Terre Haute, Indiana won enthusiastic approval. The Contour Bottlebecame one of the few packages ever granted trademark status by the U.S. PatentOffice. Today, its one of the most recognized icons in the world - even in the dark!1920s … Bottling overtakes fountain salesAs the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hitBABASAB PATIL 14
  • Hindustan Cocal Cola Beverages Private Limitedstarting in 1923. A few years later, open-top metal coolers became the forerunnersof automated vending machines. By the end of the 1920s, bottle sales of Coca-Colaexceeded fountain sales.1920s and 30s … International expansionLed by Robert W. Woodruff, chief executive officer and chairman of the Board, theCompany began a major push to establish bottling operations outside the U.S.Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy andSouth Africa. By the time World War II began, Coca-Cola was being bottled in 44countries.1940s … Post-war growthDuring the war, 64 bottling plants were set up around the world to supply thetroops. This followed an urgent request for bottling equipment and materials fromGeneral Eisenhowers base in North Africa. Many of these war-time plants werelater converted to civilian use, permanently enlarging the bottling system andaccelerating the growth of the Companys worldwide business.1950s … Packaging innovationsFor the first time, consumers had choices of Coca-Cola package size and type-thetraditional 6.5 ounce Contour Bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960.BABASAB PATIL 15
  • Hindustan Cocal Cola Beverages Private Limited1960s … New brands introducedSprite®, Fanta®, Fresca® and TAB® joined brand Coca-Cola in the 1960s. Mr.Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke®and Cherry Coke®, followed by POWERaDE® and Fruitopia® in the 1990s. Todayscores of other brands are offered to meet consumer preferences in local marketsaround the world.1970s and 80s … Consolidation to serve customersAs technology led to a global economy, retail customers of The Coca-Cola Companymerged and evolved into international mega-chains. Such customers required a newapproach. In response, many small and medium-size bottlers consolidated to betterserve giant international customers. The Company encouraged and invested in anumber of bottler consolidations to assure that its largest bottling partners wouldhave capacity to lead the system in working with global retailers.1990s … New and growing marketsPolitical and economic changes opened vast markets that were closed orunderdeveloped for decades. After the fall of the Berlin Wall, the Company investedheavily to build plants in Eastern Europe. As the century closed, more than $1.5billion was committed to new bottling facilities in Africa.21st Century …The Coca-Cola bottling system grew up with roots deeply planted in localBABASAB PATIL 16
  • Hindustan Cocal Cola Beverages Private Limitedcommunities. This heritage serves the Company well today as consumers seekbrands that honor local identity and the distinctiveness of local markets. As wastrue a century ago, strong locally based relationships between Coca-Cola bottlers,customers and communities are the foundation on which the entire business grows.Vision”To achieve sustainable growth; we have established a vision with clear goals. • Profit: Maximizing return to shareowners while being mindful of our overall responsibilities. • People: Being a great place to work where people are inspired to be the best they can be. • Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs. • Partners: Nurturing a winning network of partners and building mutual loyalty. • Planet: Being a responsible global citizen that makes a difference”. Mission”Everything we do is inspired by our enduring mission: • To Refresh the World... in body, mind, and spirit. • To Inspire Moments of Optimism... through our brands and our actions. • To Create Value and Make a Difference... everywhere we engage”.BABASAB PATIL 17
  • Hindustan Cocal Cola Beverages Private LimitedValuesThey are guided by shared values that they will live by as a company and asindividuals. • Leadership: "The courage to shape a better future" • Passion: "Committed in heart and mind" • Integrity: "Be real" • Accountability: "If it is to be, it’s up to me" • Collaboration: "Leverage collective genius" • Innovation: "Seek, imagine, create, delight" • Quality: "What we do, we do well"Beliefs“There is much in our world to celebrate, refresh, strengthen and protect. TheCoca-Cola Company is a vibrant network of people, in over 200 countries, puttingcitizenship into action. Through our actions as local citizens, we strive every day torefresh the marketplace, enrich the workplace, protect the environment andstrengthen our communities”.”We are a local employer, with responsibility to enable our people to tap into theirBABASAB PATIL 18
  • Hindustan Cocal Cola Beverages Private Limitedfull potential; working at their innovative best and representing the diversity of theworld we serve”.”We are an investor in local economies and a driver of marketplace innovation, witha responsibility to act as a good steward of our natural environment”.”And we are a local citizen, understanding our responsibility to contribute to animproved quality of life in our communities”.Values and Commitments at The Coca-Cola CompanyThe reputation of The Coca-Cola Company is built on trust and respect. Ouremployees and those who do business with us around the world know we arecommitted to earning their trust with a set of values that represent the higheststandards of quality, integrity, excellence, compliance with the law, and respect forthe unique customs and cultures in communities where we operate.Our Company has always endeavored to conduct business responsibly and ethically.We respect international human rights principles aimed at promoting andprotecting human rightsOur acknowledgment of these international principles is consistent with ourdedication to enriching the workplace, preserving the environment, strengtheningthe communities where we operate.BABASAB PATIL 19
  • Hindustan Cocal Cola Beverages Private LimitedSupplier Guiding PrinciplesThe Supplier Guiding Principles (SGP) are a vital pillar of The Coca-ColaCompanys workplace accountability programs. These programs are driven by thebelief that good corporate citizenship is essential to our long-term business successand must be reflected in our relationships and actions in our workplaces and theworkplaces of those who are authorized to directly supply our business.Recognizing that there are differences in laws, customs, and economic conditionsthat affect business practices around the world, we believe that shared values mustserve as the foundation for relationships between The Coca-Cola Company and itssuppliers. The Supplier Guiding Principles communicate our values andexpectations and emphasize the importance of responsible workplace policies andpractices that comply, at a minimum, with applicable environmental laws and withlocal labor laws and regulations. The principles outlined below reflect the values weuphold in our own policies, and we expect our direct suppliers to follow the spiritand intent of these guiding principles. 1. Freedom of Association and Collective Bargaining Respect employees right to join, form, or not to join a labor union without fear of reprisal, intimidation or harassment. Where employees are represented by a legally recognized union, establish aBABASAB PATIL 20
  • Hindustan Cocal Cola Beverages Private Limited constructive dialogue with their freely chosen representatives and bargain in good faith with such representatives. 2. Prohibit Child Labor Adhere to minimum age provisions of applicable laws and regulations. 3. Prohibit Forced Labor and Abuse of Labor Prohibit physical abuse of employees and prohibit the use of all forms of forced labor, including prison labor, indentured labor, bonded labor, military labor or slave labor. 4. Eliminate Discrimination Maintain workplaces that are free from discrimination or physical or verbal harassment. The basis for recruitment, hiring, placement, training, compensation, and advancement should be qualifications, performance, skills and experience. 5. Work Hours and Wages Compensate employees relative to the industry and local labor market. Operate in full compliance with applicable wage, work hours, overtime and benefits laws, and offer employees opportunities to develop their skills and capabilities, and provide advancement opportunities where possible. 6. Provide a Safe and Healthy Workplace Provide a secure, safe and healthy workplace. Maintain a productiveBABASAB PATIL 21
  • Hindustan Cocal Cola Beverages Private Limited workplace by minimizing the risk of accidents, injury, and exposure to health risks. 7. Protect the Environment Conduct business in ways which protect and preserve the environment. Meet applicable environmental laws, rules, and regulations. 8. Compliance with Applicable Laws and Standards Suppliers to The Coca-Cola Company and suppliers authorized by The Coca-Cola Company are required to meet the following standards, at a minimum, with respect to their operations as a whole: 9. Laws and Regulations Supplier will comply with all applicable local and national laws, rules, regulations and requirements in the manufacturing and distribution of our products and supplies and in the provision of services. 10. Child Labor Supplier will comply with all applicable local and national child labor laws. 11. Forced Labor Supplier will not use forced, bonded, prison, military or compulsory labor. 12. Abuse of Labor Supplier will comply with all applicable local and national laws on abuse of employees and will not physically abuse employees.BABASAB PATIL 22
  • Hindustan Cocal Cola Beverages Private Limited 13. Freedom of Association and Collective Bargaining Supplier will comply with all applicable local and national laws on freedom of association and collective bargaining. 14. Discrimination Supplier will comply with all applicable local and national discrimination laws. 15. Wages and Benefits Supplier will comply with all applicable local and nationa wages and benefits laws. 16. Work Hours and Overtime Supplier will comply with all applicable local and national work hours and overtime laws. 17. Health and Safety Supplier will comply with all applicable local and national health and safety laws. 18. Environment Supplier will comply with all applicable local and national environmental laws. 19. Demonstration of Compliance Supplier must be able to demonstrate compliance with the Supplier Guiding Principles at the request and satisfaction of The Coca-Cola CompanyBABASAB PATIL 23
  • Hindustan Cocal Cola Beverages Private LimitedThese minimum requirements are a part of all agreements between The Coca-ColaCompany and its direct and authorized suppliers. We expect our suppliers todevelop and implement appropriate internal business processes to ensurecompliance with the Supplier Guiding Principles. The Company routinely utilizesindependent third-parties to assess suppliers compliance with the SGP. Theassessments generally include confidential interviews with employees and on-sitecontract workers. If a supplier fails to uphold any aspect of the SGP requirements,the supplier is expected to implement corrective actions. The Company reserves theright to terminate an agreement with any supplier that cannot demonstrate thatthey are upholding the SGP requirements.QualityWe ensure the quality and safety of our beverages through The Coca-Cola QualitySystem (TCCQS), our integrated approach to managing quality, environment,health and safety. We continuously review TCCQS to ensure it meets the moststringent and up-to-date global requirements related to food safety, as well asquality management methods, industry best practices and marketplace conditions.In our ingredient evaluation laboratories, for example, we perform precise analysesof fruit juices and other ingredients sent to us by our suppliers, to ensure and toimprove product quality. Our processes, too, undergo constant scrutiny, tosafeguard the water we use in our products and the packaging that carries them toBABASAB PATIL 24
  • Hindustan Cocal Cola Beverages Private Limitedour consumers. We inform and educate our business partners about our standardsso that they meet the highest quality requirements. Under TCCQS, quality is ourhighest business objective and our enduring obligation.The Coca-Cola Quality System: a worldwide initiative involving every aspect of ourbusiness. Everyone who works for or with Coca-Cola is empowered and expected tomaintain the highest standards of quality in products, processes and relationships.TCCQS mandates in-depth self-assessment throughout our operations, by all ourbusiness units. This enables us to continually raise our standards.The latest version of our system-Evolution 3, launched in 2004-has been externallybenchmarked against international quality standard ISO 9001. It also incorporatesthe Hazard Analysis Critical Control Point system.BABASAB PATIL 25
  • Hindustan Cocal Cola Beverages Private LimitedValue Chain • Our Suppliers Our suppliers include those business partners who supply our system with materials, including ingredients, packaging and machinery as well as goods and services. At a minimum, all authorized and direct suppliers must comply with all applicable laws and regulations, including those concerning child labor, forced labor, abuse of labor, freedom of association and collective bargaining, discrimination, wages and benefits, working hours and overtime, health and safety, and environmental practices. All our new agreements with suppliers require compliance with our Supplier Guiding Principles. Our Customers Our customers include large, international chains of retailers and restaurants, as well as small, independent businesses. Some of our customers are major corporations as globally familiar as the name Coca-Cola; others are the corner market or the local pushcart vendor. Whether customers are large or small, we work with them to create mutual benefit. Helping them to grow their businesses helps to grow ours, too. Together with our bottling partners, we serve our customers through account management teams, providing services and support tailored to their needs.BABASAB PATIL 26
  • Hindustan Cocal Cola Beverages Private Limited Customer Development and Training: We provide support to smaller customers to help make their businesses more efficient and profitable. These centers provided training in general management, marketing, finance, inventory management and customer service-at no cost-to more than 21,000 independent retailers in 2005. We also work with customers to broaden the range of beverages they offer, provide nutritional information and ensure our beverages are marketed responsibly.BABASAB PATIL 27
  • Hindustan Cocal Cola Beverages Private LimitedPackaging - Why It MattersFar from being a burden and waste, packaging adds value to products by extendingthe shelf-life of goods, minimizing breakage, reducing transportation and handlingcosts, safeguarding public health and providing product-use information andconvenience to the consumer. The negative perceptions of packaging simply as atroublesome byproduct are at direct odds with the significant role it plays in society.Recognizing the role of packaging in no way diminishes the need to furtherminimize its impact on the environment. In fact, in an emerging era of scarcernatural resources, rising energy costs and greater global environmental awareness,companies focused on long-term success are moving beyond simply limiting impactsand are working toward competitive packaging solutions that maximize social andenvironmental value.About BottlingOne of our great strengths is our ability to conduct business on a worldwide scalewhile maintaining a local approach.At the heart of this approach is our bottling system. Before any of our 2,400beverage products is consumed by anybody around the world, it has to be produced,packaged and distributed. Since we reach 6 billion consumers in over 200 countries,our bottling system has to be the best. Our business opportunities are enormous andour commitment to our consumers and communities is great.BABASAB PATIL 28
  • Hindustan Cocal Cola Beverages Private LimitedWORKING WITH THE BOTTLERSPLANET: We act as a responsible global citizen, focused on our environment effortsand making a difference wherever we engage.PEOPLE: We inspire to be a great workplace where people are inspired to be thebest they can be.PROFIT: We maximize returns to our shareowners while being mindful of ouroverall responsibilities.PORTFOLIO: We bring the global market place beverage brands that anticipateand satisfy people’s desires and needs.PARTNERS: We actively nurture a winning network of beverages and bottlingparterns building mutual loyaltyBABASAB PATIL 29
  • Hindustan Cocal Cola Beverages Private LimitedOur bottling partners are local companies so they are rooted in their communities,thinking and acting locally. They are employers, purchasers of local goods andservices, good neighbors, and, of course, producers of the worlds most popularbeverages.Its a big job, and sometimes its done quite creatively. In Indonesia, for instance,boats transport Coca-Cola® and our other brands between the many hundreds ofislands that make up that nation. In the Amazon, where the main road is often theriver itself, water-borne distribution is also common. In some of the higherelevations of the Andes, Coca-Cola is sometimes transported by four-legged power.Across much of Africa, bottlers deliver to thousands of family-run kiosks and home-based stores on which local economies depend.BABASAB PATIL 30
  • Hindustan Cocal Cola Beverages Private LimitedOur System: How We OperateCoca-Cola is often thought to be one brand made by one company. In reality, it is avibrant business system, in more than 200 countries around the world, made up ofThe Coca-Cola Company and more than 300 Coca-Cola bottlers. Most of ourbottlers are independently owned and not controlled by our Company.Together with our bottling partners, we operate the most extensive beveragedistribution system in the world. Known informally as the Coca-Cola system, thisnetwork of 848 plants, approximately 200,000 vehicles and more than nine millioncoolers and vending machines helps us to manufacture and distribute our productsto customers and consumers around the world, where our beverages are consumedat a rate of more than 1.3 billion servings each day.The Coca-Cola System • The Coca-Cola Company -- Owns the global Coca-Cola brand and owns or licenses over 400 other brands. -- Manufactures and sells beverage concentrate and syrup to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. -- Manufactures and sells some finished beverages, both carbonated and noncarbonated.BABASAB PATIL 31
  • Hindustan Cocal Cola Beverages Private Limited • Our Bottling Partners -- Combine our syrup with carbonated water or combine our concentrate with sweetener and water and/or carbonated water (depending on the product) to produce a finished beverage. -- Place beverages in cans or bottles and then transport the finished beverages to warehouses or to customer locations.Our bottling partners operate the majority of Coca-Cola bottling and canningoperations, producing and distributing more than 80 percent of our worldwidevolume. The Coca-Cola Company also operates a limited number of bottling andcanning facilities.Bottling partners range from international and publicly traded businesses to small,family-owned operations. Although we invest in the majority of bottling companies,we have a controlling ownership interest in only a small number, meaning that thevast majority of bottlers operate with separate governance and managementstructures, and in accordance with applicable laws and customs. Our relationshipwith these partners is one of collaboration and support, based on mutual self-interest, common goals and shared values. We make every effort to positivelyinfluence environmental activities and policies throughout our bottling system andto provide information from both our Company-owned operations and our broadersystem.BABASAB PATIL 32
  • Hindustan Cocal Cola Beverages Private LimitedCommunityWe live and work in more than 200 countries and have deep roots in communitiesaround the world. We are connected to the lives and livelihoods of thosecommunities. And we are intensely committed to the economic success andcontinued growth of these communities.We contribute to economic success through our day-to-day business, by providingjobs in our own operations as well as jobs in businesses we touch along the way. Wecall it the multiplier effect, where we not only positively affect those directlyemployed by our business but also create and expand businesses that do businesswith us.In addition to economic impact, we invest in local economies through substantiveand locally relevant community programs. Wherever we operate, we work withlocal leaders, businesses and governments to identify community needs andaspirations. The resulting partnerships and programs are an important part of howwe contribute to the well-being of the communities where we operate.Economic ImpactThe Coca-Cola business is essentially a local one. With our bottling partners, weproduce our products in more than 800 plants around the world. In those plants andother facilities, we employ local people, pay taxes to governments, pay suppliers forgoods, services and capital equipment, and support community investmentprograms.BABASAB PATIL 33
  • Hindustan Cocal Cola Beverages Private LimitedWe support socioeconomic development in developing and emerging marketsthrough economic opportunities and wealth creation as well as technology andknowledge transfer; local entrepreneurship; and other international investment.Local InitiativesThe Company and our bottling partners contribute to a wide range of communitycauses in countries around the world. In keeping with the local nature of ourbusiness and the differing needs of individual communities, our approach isprimarily a local one, with community investment priorities determined on amarket-by-market basis. We work with people in communities and governmentalorganizations and NGOs to create and support projects most relevant tocommunities.BABASAB PATIL 34
  • Hindustan Cocal Cola Beverages Private LimitedResponding to Local Needs: We support a wide range of initiatives that respond tospecific local needs: • Health: Tackling such health issues as polio, tuberculosis, hepatitis, malnutrition and hygiene education • HIV/AIDS: Educational campaigns, condom distribution, HIV/AIDS orphanages, hospices • Micro enterprise: Supporting self-help groups, establishing funds, providing training • Cultural heritage and the arts: Promoting the arts and artists, preserving heritageBABASAB PATIL 35
  • Hindustan Cocal Cola Beverages Private LimitedCOKE PRODUCTS IN INDIA: 1. Coca-cola 2. Thumps Up 3. Sprite 4. Fanta 5. Limca 6. Maaza 7. Kinley 8. Minute MaidOut of which • Coca-cola, Maaza, Kinley, Sprite, Minute Maid are Coca-Cola products and • Thumps up, Limca, Fanta are the products of Parle which are purchased by the Coca-Cola Co.PROFITABLE BRANDS ARE: • 300ml - Maaza, Coke, Sprite • 600 ml - all brands • 2 litre – All brandsBABASAB PATIL 36
  • Hindustan Cocal Cola Beverages Private LimitedSTRATA”S OF COCA-COLA Co. INDIAIndia is been divided into three (3) strata’s they are 1. North 2. South 3. CentralCEO NORTH SOUTH CENTRALNote: Each strata/region has a Regional Vice PresidentBABASAB PATIL 37
  • Hindustan Cocal Cola Beverages Private LimitedDIVISION FOR KARNATAKA UNIT OF COCA-COLA INDIAThe entire Karnataka unit is divided into mainly TWO (2) territories andaccordingly there is general sales manager been assigned to each territory. 1. North Karnataka 2. South KarnatakaNote : The AGM for North Karnataka is: Mr. Vilas The AGM for South Karnataka is : Mr. DeepakSouth Karnataka is further divided into 1. Bangalore city 2. Up-country consisting places like Mysore Mangalore, Tumkur, Kolar etc.BABASAB PATIL 39
  • Hindustan Cocal Cola Beverages Private LimitedDISTRIBUTION CHANNEL OF COCA-COLA PRODUCTS FORBELGAUM, GADAG, HAVERI, NORH KANARABOTTLING PLANT (BANGALORE)DEPOT (DHARWAD)DISTRIBUTORS(BELGAUM, GADAG, HAVERI, NORH KANARA)RETAILERSCONSUMERSNote: For places like Bijapur and other big markets the distribution channel doesnot consist of the “DEPOT” at Dharwad, they directly get their stock from theBangalore plant.BABASAB PATIL 41
  • Hindustan Cocal Cola Beverages Private LimitedTYPES OF OPERATIONS UNDERTAKEN BY THE COMPANYCoca-cola India Holding, the intermix of the company-owned bottling operations(COBO’s) and franchisee owned bottling operations (FOBO’s) . COMPANY-OWNED BOTTLING OPERATIONS (COBOS): COBO refers to the operations directly carried by the company. These COBO’s have to work under the guidelines by the Coca-cola Co. There are three (3) COBO units in South India they are at following places:  Bangalore (Biddi)  Andhra Pradesh  Chennai FRANCHISEE OWNED BOTTLING OPERATIONS (FOBO’S): FOBO’s refers to the operations carried out by the FRANCHISER’sThe plant at Hospet was initially a FOBO unit but now it’s been purchased by thecompany and soon the company operations will start in that plant.BABASAB PATIL 43
  • Hindustan Cocal Cola Beverages Private LimitedDISTRIBUTORS DETAILS IN BELGAUMCriteria for selecting the distributors:The company looks at the prospects before permitting/Authorizing for distributor.Therefore the criteria’s are as follows,  He should have a godown  Vehicles  Manpower  Deposit for cases/crates at the rate of 200 each  Liquid valueDistributors in Belgaum 1. Trimurthi 2. Desai 3. TejasviNumber of units possessed by distributorsIn season - 14 unitsIn off-season – 6 units * Units refers to the vehicles possessed by the distributors for local logisticsBABASAB PATIL 44
  • Hindustan Cocal Cola Beverages Private Limited Factors influencing the assignment of areas to distributors salesman 1. An average number of outlets the salesman effectively works on. A salesman can handle 60 outlets on an average effectively in a day 2. Depending on the frequency of a particular route. The distributors follow three types of frequencies they are: a) Daily b) Alternative days c) Once a weekNote: Once in a week is only followed for the up country areasBABASAB PATIL 45
  • Hindustan Cocal Cola Beverages Private Limited Working of distributors The distributor first has to maintain the following • The Brand pack separately after unloading the vehicle i.e. the brand order in the following sequence - Coke - Lime - Orange - Juice - Water • 5 days stock to meet the demand.The company gives target to the distributors and these distributors with help ofsales executives break the target into 1. Daily 2. Weekly 3. Brand wise 4. Sales wiseHere the distributor focuses on weaker brands and tries to push maximum numberof these weaker units into the mixed cases ordered by the retailers.For Ex: The sales of Fanta are considered to be low then the distributor adds morenumber of Fanta units in a mixed case.BABASAB PATIL 46
  • Hindustan Cocal Cola Beverages Private LimitedThe distributor have to maintain a four (4) day stock with them which will becomethe reorder level once when the order is placed at the Dharwad depot the stockcomes up the next day but an important point to note here is unless and until theempty bottles reach the depot the new stock will not reach the distributor.Distributors route Planning :Distributors identify two routes they are, • Potential route • Non Potential route Note: For Potential the vehicle goes daily and for non potentials it goes once in a week The potential routes are those routes in which the distributor gets maximum business as the number of outlets will be more and therefore the vehicle goes daily to meet the market demand. Ex: If a distributor has 400 outlets in his area he has to plan accordingly as per his route where in he has to visit 60 outlets per route.BABASAB PATIL 47
  • Hindustan Cocal Cola Beverages Private Limited OPERATIONAL PLANS FOR THE YEAR Distributors have two plans a year 1. First plan from January 1st to June 15th 2. Second Plan from June 15th to December 31stFIRST PLAN:This plan is considered as yielding season where maximum business will be earned.The 70% of the target needs to be achieved during this seasonSECOND PLAN:Here in this plan there will be minimum business and during this season there willbe lot of promotional activities undertaken.BABASAB PATIL 48
  • Hindustan Cocal Cola Beverages Private LimitedThe role of distributor in market:The distributors’ salesman is trained properly with respect to his behaviour withthe retailers. As soon as the vehicle goes to the outlet it is the duty of the sales personto 1. Greet the retailer and have a look at the cooler/refrigerator. 2. He has to suggest the retailer about the stock needed 3. Convince him for purchase 4. Place the products in the cooler as per brand order 5. Look at the warm displays 6. Follow up and handle complaints Support from the company to the distributorThe company supports the distributors in terms of incentives during the off seasoni.e. during the second plan in order to retain the distributor.BABASAB PATIL 49
  • Hindustan Cocal Cola Beverages Private LimitedEXAMPLE FOR CALCULATION OF ROI (RETURN ON INVESTMENTS) FORDISTRIBUTORS: • The deposit of 1500 cases at the rate of 200 Rs per case = 3,00,000 • Liquid Value on an average including all mini, 300 ml, half litre and 2 litre = 2,00,000 • Godown deposit = 20,000 • Vehicle = 4,80,000 Therefore the total investment is Rs 10, 00,000Now to calculate the ROI = ({Volume X Case rate} – Expenses) / InvestmentIf a distributor has 50,000 volume, 11 Rs per case and Other Expenses 35,000 then , 50,000 X 11 =55,000 – 35,000 =20,000 RsTherefore ROI = 20,000 /10,00,000 = 0.20 = 20%Hence the ROI is favourable.BABASAB PATIL 50
  • Hindustan Cocal Cola Beverages Private LimitedSAMPLINGSelection of Sample: Sampling allows us to concentrate our attention upon relatively smallnumber of people and hence devote more energy to ensure that the informationcollected from them is accurate.POPULATION: • People from the Belgaum city.SAMPLE FRAME: • Retailers at Belgaum city.SAMPLE UNIT: • Retailers who sell Cold-drinksSAMPLING SIZE: • 100 retailers only.SAMPLE METHOD: • Stratified Sampling.BABASAB PATIL 51
  • Hindustan Cocal Cola Beverages Private LimitedRESEARCH DESIGNThe research was divided into two parts they were , 1. Survey 2. ImplementationIn the month of December survey was conducted and in the remaining periodimplementation was carried out.Survey:For the survey purpose the entire Belgaum city was divided into three strata’s, 1. Bus stand area which had places like Bus stand, Fort road , Khade Bazaar, Chavat galli, Shivaji Nagar etc. 2. College Road , Tilakwadi , Vadagoan, Shahpur etc. 3. Club road ,Sadhaahiv nagar, Azam nagar, Nehru nagar, JNMC road Shiv Basav nagar etc.As per the route planner provided by the company the survey was conductedthrough questionnaires. The routeplanner consisted the list of RED OUTLETSBABASAB PATIL 52
  • Hindustan Cocal Cola Beverages Private Limited DETAILS OF RED OUTLETS: The Red outlets are divided as: 1. BRONZE 2. SILVER 3. GOLD 4. DIAMONDThe Basis for the above division are as follows1. Bronze outlets are those outlets who sell less than 299 cases a Year.2. Silver outlets are those outlets who sell 300 cases to 499 cases a Year.3. Gold outlets are those outlets who sell 500 cases to 799 cases a Year.4. Diamond outlets are those outlets who sell 800 and above cases a Year.BABASAB PATIL 53
  • Hindustan Cocal Cola Beverages Private LimitedImplementationAfter the survey was conducted the Implementation work was carried out for thesurveyed outlets, during the remaining period i.e. 16 weeks (2 days in a week fromJan 07 to April 07).In this procedure the visits were made to the outlets along with the company vehicleand seen that the different problems encountered with the outlets during the surveywere sorted out and seen to it the promotional activities were actually implemented.The problems of display, Credit etc was known during survey. So these problemswere solved during the implementation part.It was also seen that every outlet survey had a proper display of the company’sproduct.In short the product delivery system was learnt.BABASAB PATIL 54
  • Hindustan Cocal Cola Beverages Private LimitedDATA COLLECION APPROACH: The Data was collected through two sources, • Primary sources: a) Questionnaire b) Personal interaction • Secondary sources: a) Related information from internet: b) Organization ReportDATA COLLECTION METHOD: • RETAILER SURVEY • PERSONAL INTREVIEWDATA COLLECTION TECHNIQUE: • QUESTIONAIRE • PERSONAL INTERVIEWBABASAB PATIL 55
  • Hindustan Cocal Cola Beverages Private LimitedMEASURMENT TECHNIQUES: This project is analyzed with the help of SPSS software wherein the data isanalyzed with the help of • Bar Graphs • Frequency tables • Percentage tablesBABASAB PATIL 56
  • Hindustan Cocal Cola Beverages Private Limited CHAPTER-IIIBABASAB PATIL 57
  • Hindustan Cocal Cola Beverages Private LimitedRESULTS AND FINDINGSBABASAB PATIL 58
  • Hindustan Cocal Cola Beverages Private Limited1) What is the nature of the outlet?Statistics N Valid 100 Missing 0 Frequency Percent Valid Cumulative Percent Percent Valid Coke 23 23.0 23.0 23.0 Pepsi 1 1.0 1.0 24.0 Shared 76 76.0 76.0 100.0 Total 100 100.0 100.0 Nature of outlet 100 80 60 40 20 Percent 0 Coke Pepsi Sahred Nature of outlet The above chart shows that out of the surveyed outlets 76% outlets surveyed are shared outlets, 23% are coke monopoly outlets, 1% is Pepsi monopoly.BABASAB PATIL 59
  • Hindustan Cocal Cola Beverages Private Limited2) How is the relationship with the distributor?Statistics N Valid 100 Missing 0 Frequenc Percent Valid Percent Cumulative y Percent Valid Good 99 99.0 99.0 99.0 Bad 1 1.0 1.0 100.0 Total 100 100.0 100.0 Relationship with the distribtor 120 100 80 60 40 20 Percent 0 Good Bad Relationship with the distribtor The above chart shows that 99% of the retailers surveyed had good opinion towards the distributors; therefore the distributors have to maintain the same. Only 1% of the retailers surveyed have bad opinion therefore the distributors have to control this aspect because the word of mouth plays a very important role and they should try to make their relationship 100%.BABASAB PATIL 60
  • Hindustan Cocal Cola Beverages Private LimitedQ3) How many times the distributor visits outlets per weekStatistics N Valid 100 Missing 0 Frequency Percent Valid Percent Cumulative Percent Valid Once 7 7.0 7.0 7.0 Alternative 47 47.0 47.0 54.0 Daily 46 46.0 46.0 100.0 Total 100 100.0 100.0 How many times the distributor visits outlets per week 50 40 30 20 Percent 10 0 Once Alternative Daily How many times the distributor visits outlets per weekThe above chart reveals the frequency of visit made by the distributor in themarket. This chart shows that to 47% of the outlets surveyed the visit was onalternative days, 46% of the outlets surveyed the visit was on daily basis and 7% ofthe outlets surveyed the visits are made once a week. This shows that the company ismostly following the Alternative and daily routes.BABASAB PATIL 61
  • Hindustan Cocal Cola Beverages Private LimitedQ4) How many times he is expected to visit Statistics N Valid 100 Missing 0 Frequency Percent Valid Cumulative Percent Percent Valid Once 3 3.0 3.0 3.0 Alternative 36 36.0 36.0 39.0 Daily 61 61.0 61.0 100.0 Total 100 100.0 100.0 How many times he is expected to visit 70 60 50 40 30 20 Percent 10 0 Once Alternative Daily How many times he is expected to visitThe above chart shows that there is a huge demand for Coke Products in Belgaumcity and therefore 61% of the retailers are expecting daily visits from theBABASAB PATIL 62
  • Hindustan Cocal Cola Beverages Private Limiteddistributors in order to meet the demand from the consumers, therefore thecompany has to look to this aspect seriously.36% expect an alternative days visits instead of daily visits, the outlets which arenon potential outlets expect the distributor to visit once a weekQ 5) Are cokes product delivered on timeStatistics N Valid 100 Missing 0 Frequenc Percent Valid Cumulative y Percent Percent Valid yes 75 75.0 75.0 75.0 No 25 25.0 25.0 100.0 Total 100 100.0 100.0 Are cokes product delivered on time 80 60 40 20 Percent 0 yes No Are cokes product delivered on timeThe above chart shows that delivery of the products is on time and 75% of theretailers have agreed to this question and 25% have not agreed.The company has to make efforts to supply the products to these 25% outlets.BABASAB PATIL 63
  • Hindustan Cocal Cola Beverages Private LimitedQ 6) Are you satisfied with the supply each time ?Statistics N Valid 100 Missing 0 Frequenc Percent Valid Cumulative y Percent Percent Valid yes 66 66.0 66.0 66.0 No 34 34.0 34.0 100.0 Total 100 100.0 100.0 Are you satisfied with the supply each time 70 60 50 40 30 20 Percent 10 0 yes No Are you satisfied with the supply each timeThe chart shows that the company is effective during each supply with respect to thebehaviour and suggestions to the retailers.BABASAB PATIL 64
  • Hindustan Cocal Cola Beverages Private LimitedTherefore 66% of the retailers surveyed are satisfied with the supply during eachdelivery and 34% are dissatisfied with the same .Q 7) Sales per weekStatistics N Valid 100 Missing 0 Frequenc Percent Valid Cumulative y Percent Percent Valid 0-10 50 50.0 50.0 50.0 10-20 45 45.0 45.0 95.0 20 and5 5.0 5.0 100.0 above Total 100 100.0 100.0 Sales per week 60 50 40 30 20 Percent 10 0 0-10 10-20 20 and above Sales per weekBABASAB PATIL 65
  • Hindustan Cocal Cola Beverages Private LimitedThe chart shows that the sales per week of 50% of the retailers is 0-10 cases and45% is 10-20 cases so efforts should be made to increase the sales by proper supplyand other promotional activities.Another method is to supply according to their wants and there should not beshortage of products to these outlets.FINDINGS 1. Most of the outlets are shared. 2. The basic problem is that the supply from the plant to the depot and then to the distributors takes a long time due to which the distributors are not in the position the supply the required quantity to the retailers. 3. On an average the sales per week of the retailers is between 0-20 cases. 4. The sales people and the distributor have maintained good relationship with the retailers. 5. On an average the expected visits are daily.BABASAB PATIL 66
  • Hindustan Cocal Cola Beverages Private LimitedSUGGESTIONS 1. The company must have a super stockiest in Belgaum city so that this can cater not only the need of the Belgaum market but also the surroundings places. 2. The company has to convert Pepsi outlets into coke outlets by giving them promotions like schemes, gifts, proper supply. 3. The company has to start its plant in Hospet as soon as possible so that there will be no problem to the distributors as well as the retailers with respect to the stock. 4. The company has to put on their best efforts to convert the76% shared outlets into coke monopoly outlets by giving promotional activities and also by on time delivery of stocks which plays a very important role.BABASAB PATIL 67
  • Hindustan Cocal Cola Beverages Private Limited 5. 36% of the retailers expect alternative days visits instead of daily visits, the outlets which are non potential outlets expect the distributor to visit once a week therefore the company has to supply accordingly. 6. To make the satisfaction level of the retailers to 100% the company has to supply properly to the remaining 34% outlets surveyed.CONCLUSIONDistribution Channel plays a very important role especially with respect to the softdrink industry because if the product is not available on time the consumes willswitch on to other brands and the company will loose its market share and hence aneffective distribution channel is the need of this industry.The distribution channel of coca cola company is effectiveBABASAB PATIL 68
  • Hindustan Cocal Cola Beverages Private LimitedBABASAB PATIL 69
  • Hindustan Cocal Cola Beverages Private Limited CHAPTER IV QUESTIONAIRE FOR RETAILERS1. Name and Address2. What is the nature of outlet a) Coke b) Pepsi c) Shared if ‘B’ Why a) Supply problem of Coke b) Any other problem3. Relationship of the distributor/market developers/sales executives with you a) Good b) BadBABASAB PATIL 70
  • Hindustan Cocal Cola Beverages Private Limited4. How many times a distributor visits your outlet per week a) Once b) alternative days c) daily5. How many times would you expect distributor vehicle to visit you a) Once b) alternative days c) daily6. Are coke’s product delivered in time a) Yes b) No7. Are you satisfied with the supply of coke during each delivery a) Yes b) No8. Your sales per week (No. of cases) a) 0-10 b) 10-20 c) 20 aboveBIBLOGRAPHY:All the information needed to complete this project is obtained from the followingsources: 1. Mr. Rajesh Coke Sales Executive for North Karnataka. 2. Company Website: www.coca-cola.com 3. Search Engines 4. Market Developers. 5. Distributors 6. Marketing Research Book by Tull and HawkinsBABASAB PATIL 71
  • Hindustan Cocal Cola Beverages Private LimitedBABASAB PATIL 72